PETALING JAYA: Agents have generally welcomed the updated guidelines for the Malaysia My Second Home (MM2H) programme, except for some concerns over the requirement for holders to own a property in Malaysia.

Jaime Chiew, a managing director of an MM2H consultancy, said the mandatory property purchase and 10-year holding period can be a significant financial commitment for Silver tier holders who have a five-year visa validity period. She said this could restrict their movements and ability to sell the property quickly if their circumstances were to suffer some changes.

“It may also deter applicants who are unsure about a long-term stay or want to commit a significant amount of their money to real estate,” she said.

On the flip side, Chiew said the home ownership requirement could stimulate the property market and ensure genuinely interested prospects.

“Purchasing property signifies a bigger financial commitment to Malaysia, potentially leading to increased investment and contribution to the economy. It may also discourage applicants seeking the programme’s temporary benefits,” she said.

Chiew said the new guidelines are a step towards reviving potential interest in the MM2H programme, especially among high-end segments.

“It’s also good to know that in the event of the principal holder passing away, the visa can be transferred to the next-of-kin,” she said.

MM2H Consultants Association president Anthony Liew expressed hope for the ministry to consider relaxing some fixed deposit and home ownership conditions in the updated guidelines.

“Perhaps there could be a lower fixed deposit requirement as it is mandatory for MM2H holders to buy a house,” he said.

“Some MM2H holders may prefer renting first before choosing where they intend to purchase homes,” he added.

Liew also expressed concerns over the RM200,000 bank guarantee required by licensed agents.

“This is quite a big sum and can burden our agents, with the industry also having its ups and downs over the past few years,” he said.

Liew also requested an opportunity to further engage with the ministry on MM2H requirements.

“This allows us to understand the reasoning behind the current guidelines, where we can propose our views as well,” he said.

On June 14, Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing announced the updated MM2H guidelines, which contain three tiers – Platinum, Gold and Silver – that prospective applicants can apply for depending on their financial standing.

There is also a requirement for MM2H holders to purchase a house.

Platinum tier participants are required to buy and own a house with a minimum value of RM2mil under the Platinum category, RM1mil (Gold category) and RM600,000 (Silver).

For a 10-year period, MM2H participants cannot sell the houses, but can upgrade to a higher-valued home during this time.

Real estate industry veteran K. Soma Sundram said areas like the Klang Valley, Penang, Johor and Perak could spark interest among prospective MM2H participants following the new requirement.

“Generally, foreigners want to go to the main city centres, where activity is high. “If they’re looking for a place to unwind, they could even opt for quieter areas,” said the corporate strategic advisor for IQI Realty, a leading real estate agency in the nation.

Soma Sundram, a past president of the Malaysian Institute of Estate Agents, also proposed a shorter holding period.

He said that the requirement for MM2H holders to own properties would not affect property prices.

“There are larger transactions from the local market.

“However, it will be interesting to see how developers respond to this new requirement as they have the opportunity to focus on MM2H participants,” he said.

https://www.thestar.com.my/news/nation/2024/06/20/agents-give-mm2h-guidelines-thumbs-up